Which One of the Following Statements Correctly Relates to Closed-End

question 43

Multiple Choice

Which one of the following statements correctly relates to closed-end funds?

• A) Closed-end funds must sell at the NAV or above.
• B) The number of shares outstanding changes on a daily basis as shares are sold and repurchased.
• C) Shares in closed-end funds must be held until the funds mature.
• D) Once a fund closes, a new investor is unable to purchase shares in that fund.
• E) Shares of closed-end funds trade just like stocks.

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Definitions:

Cost Recovery

The process of recovering the cost of an investment, expense or other outlay over time.

Statement of Changes

The Statement of Changes outlines the alterations in equity for a specified period, showing how net income and other changes directly affect a company's financial position.

Net Assets

The difference between total assets and total liabilities, representing the owners' or shareholders' equity in a company.

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